India, Brazil support US on RMB valuation

Central bank governors in Brazil and India expressed support for the US in its attempts to convince China to revaluate the renminbi, Bloomberg reported. Chinese exports to India have outpaced Indian exports to China, and Reserve Bank of India’s governor Duvvuri Subbarao said the imbalance is "obviously" due to controls on the renminbi’s exchange rate. Brazilian governor Henrique Meirelles told the Brazilian Senate that it is critical that China allow the renminbi to appreciate. The Brazilian real has gained 28% against the renminbi over the last year, and the Indian rupee has gained 13%. The US is seeking wider support for renminbi revaluation prior to a meeting of the G20 nations in Washington on April 22. Markets are betting that China will revaluate the renminbi in the middle of 2010 if Beijing believes current growth is sustainable. Twelve-month non-deliverable yuan forwards traded at 6.622 on currency markets.